INGLIS ELECTRICAL LTD

Executive Summary

Inglis Electrical Ltd has established a solid financial footing and local market presence in the electrical installation sector, leveraging focused leadership and growing customer demand. The company’s strengths in working capital and service specialization position it well for regional expansion and diversification into commercial and value-added offerings. To capitalize on growth opportunities, it must mitigate key-person dependency and carefully manage increasing debtor levels while scaling operational capacity to meet competitive pressures.

INGLIS ELECTRICAL LTD - Analysis Report

Company Number: 12998555

Analysis Date: 2025-07-20 13:40 UTC

1. Market Position
   Inglis Electrical Ltd operates as a niche electrical installation service provider within the Hull and East Yorkshire region. As a relatively young private limited company, founded in 2020, it currently serves the local market with a strong focus on residential and small commercial electrical projects, including specialized offerings like EV charging point installations. Its local presence and direct customer engagement position it as a trusted regional player, albeit within a highly fragmented and competitive industry dominated by numerous small electricians and a few larger contractors.

2. Strategic Assets

• Strong Financial Growth and Capital Base: The company has demonstrated significant balance sheet expansion, with net assets increasing from £8k in 2020 to £55k in 2023, reflecting improved profitability and capital retention. This financial strength supports operational stability and potential reinvestment.
• Customer Receivables and Working Capital Management: A large increase in trade debtors (from £9.4k to £36.6k) and other debtors (£54k) suggests growing sales on credit, highlighting a growing customer base and contract pipeline. Healthy net current assets (£45.4k) provide liquidity to fund ongoing operations.
• Intangible Asset of Goodwill: The goodwill asset (£6.6k) indicates some acquisition or brand value, which may provide competitive differentiation.
• Experienced Leadership and Control: Mr. Kieran Inglis, a qualified electrician and sole director with full ownership, ensures focused strategic decision-making and operational expertise.
• Digital Presence and Accessibility: An active website and social media presence facilitate customer engagement and lead generation in the local market.

3. Growth Opportunities

• Geographic and Service Expansion: Leveraging its established reputation, the company can extend services beyond Hull and East Yorkshire into adjacent regions, capturing unmet demand for electrical installations and EV infrastructure.
• Commercial Sector Penetration: While currently likely focused on residential work, targeting larger commercial contracts or public sector projects could drive higher revenue and margins.
• Value-Added Services: Diversifying into maintenance contracts, smart home installations, or energy efficiency consulting can create recurring revenue streams and strengthen client relationships.
• Strategic Partnerships: Collaborations with builders, real estate developers, or EV manufacturers could provide steady project pipelines and enhance market credibility.
• Technology Investment: Investing in project management software and digital quoting tools can improve efficiency and customer experience.

4. Strategic Risks

• Dependence on Single Director and Owner: The company’s operational and strategic continuity is heavily reliant on Mr. Inglis, presenting a key-person risk that could impact business stability.
• Credit Risk from Increasing Debtors: The substantial rise in trade and other debtors (£90.6k total) could strain cash flow if not carefully managed, especially given the relatively modest cash reserves (£19.4k).
• Competitive Pressure and Market Fragmentation: The electrical installation sector is highly competitive with low entry barriers, making differentiation and customer retention challenging without scale or specialization.
• Scaling Operational Capacity: Growth ambitions will require hiring and training skilled electricians, which may be constrained by labor market conditions and increase overhead costs.
• Economic Sensitivity: Construction and home improvement demand can be cyclical and sensitive to economic downturns, impacting order volumes and payment timings.